Disappointing sales of SCM applications set to increase
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23 October 2006
Conflicting global and commercial trends combined to inhibit growth in the supply chain management (SCM) applications market over 2005.
Recently released figures from AMR Research show that the SCM software market grew a lacklustre 3% in 2005 to reach $5.6 billion. However, the market is expected to “rebound” this year with a pace of 7%, says the analyst group.
For the third year running SAP’s SCM revenue growth rate, at 6%, outstripped the rest of the market, with Oracle, i2 Technologies, Manhattan Associates, and Infor making up the other top five vendors in terms of revenue. According to AMR, inventory configuration and policy technology has seen the highest adoption rate in this sector, showing a licence growth rate of 35% in 2005. Application hosting represented an increasingly popular SCM delivery model; revenues there grew 16%.
